The accountability period shall begin from the time the incoming WSII received from the outgoing WSII the grains stocks and grains by-products which were 100% weighed and the MTS which were counted piece by piece. Management particularly the Provincial Inventory Committee should cut off the beginning accountability by conducting bag to bag inventory taking of all current accountabilities. The count may coincide with the annual March and September inventory taking.

ENDING CUT OFF
The accountability period shall end at the time when all grains stocks, grains by-products, and MTS balances are issued by the outgoing WSII to the incoming WSII with bag to bag inventory taking.

Henceforth, management shall strictly disallow transfer of accountability without bag to bag inventory taking.

A Provincial Inventory Committee (PIC) shall be created to take charge of the bag to bag inventory taking. It shall be composed of the Provincial Manager as Chairman; Provincial Accountant, Provincial Operations Officer and the Provincial Standards Quality Assurance Officer (PSQAO) as members; and the NFA Provincial COA Auditor as witness. The inventory count shall be conducted with the participation of the Calibrator and in the presence of the accountable officers concerned. (outgoing and incoming). The outgoing accountable officer shall document the ending stock/MTS balances determined during the inventory count with a WSI/ESI.

After a bag to bag inventory taking has been conducted by the PIC to determine ending balances, and after the outgoing accountable officer has considered the same in the stock reports, the NFA Provincial management specifically the Provincial Accounting Unit, using the computerized Stock Inventory Reporting System, shall generate the Final Statement of Stock Receipts, Issues, and Balances, net of TOLA (SSRIB) and the Final Statement of MTS Receipts, Issues and Balances (SMRIB). These Statements together with the Weekly Stock Reports for In-Warehouse and Weekly Stock Report for Drying Transactions and the Statement of Weekly MTS Receipts and Statement of Weekly MTS Issues shall be attached to the Final Summary of Stocks and MTS Accountability
These Reports shall be submitted to the NFA-COA Provincial Office for the latter's verification and basis for the issuance of the final COA Examination Report.

However, pending the development of the computerized system of Stock Inventory Reporting with TOLA computation, the NFA-Regional Office shall compute the tolerable allowance using the modified TOLA program.
The same group in the Regional Office working on the liquidation of past accountabilities shall also work on the computation of TOLA of current accountabilities.

(a) To identify all unliquidated past accountabilities region wide.
(b) To form a working group composed of the regional staff and if necessary, the provincial staff. The working group shall be responsible for the: (1) data entry of warehouse documents such as the WSR and WSI and the subsequent generation of the Final SSRIB for the determination of stocks accountability; (2) preparation of Schedule of In-Warehouse Transactions; (3) preparation of Schedule of Drying Transactions (4) Schedule of MTS Receipts; (5) Schedule of MTS Issues; and (6) Final Statement of MTS Receipts, Issues, and Balances (SMRIB).

(e) To identify and resolve problems brought out by the working group, particularly those not covered by any SOP. The Asst. Reg. Mgr. shall bring to the attention of the Regional Manager said items for the latter to discuss with the other Regional Managers for possible uniform implementation nationwide.
(f) To propose sanctions to the Regional Manager to be imposed to employees and officials who are remiss in their duties and responsibilities in the liquidation process. The sanctions must be in accordance with the prescribed CSC penalties on administrative offenses.
(g) To give quarterly report to SPO thru the Regional Manager regarding the status of the liquidation of past accountabilities.
(h) The task force/working group created under the SOP on Decentralization of TOLA computation shall be integrated in the aforementioned creation of working group.

receipt of accountability by incoming WSII
and/or
transfer of accountability by outgoing WSII
To illustrate:

FACTS

• In a Warehouse named CENTENNIAL, there was no bag to bag weighing during receipt of accountability by incoming WSII B from outgoing WSII A.
• Outgoing WSII A received his/her beginning inventory on bag to bag weighing basis.
• Issuance of the ending inventory of WSII B to the incoming WSII C was made on bag to bag weighing basis.
• WSII C issued his/her ending inventory to the next incoming WSII on bag to bag weighing basis.

CASE 1: Accountabilities of WSIIs A, B, and C have not been liquidated yet.
The determination of accountabilities of WSIIs A and B shall be combined starting from the accountability of the last previous WSII (WSII A) who was able to have his stocks counted by bag to bag weighing when received, and shall end with the accountability of the next WSII (WSII B) who was able to have his stocks counted by bag to bag weighing when transferred.
Tolerable allowance shall be computed based on the combined accountabilities. Any remaining shortage shall be divided proportionately among the involved WSIIs based on the volume of stocks handled.
WSII C’s accountability shall be liquidated separately since he/she received and issued his/her stocks by bag to bag weighing basis.
CASE 2: Accountability of WSII A has already been liquidated and cleared.
WSII B’s accountability shall be liquidated based on his actual accountability period. Any excess tolerable allowance credited to WSII A shall be applied to WSII B.
CASE 3: Accountability of WSII B has already been liquidated and cleared.
The ending balance per examination of WSII A shall be compared with the ending balance per stock report or per books, whichever is available in that sequence. The difference is the stock shortage/overage.

RESPONSIBLE EMPLOYEE

Asst. Regional Manager/Working Group

(i) Determine the cut off date. Liquidation must start from the time the WSII received his/her beginning inventory from outgoing WSII and end at the time of issuance of ending inventory to incoming WSII.
(ii) Secure pertinent Certificate of Inventory Taking from the COA or the PIC if there is any. The inventory must have been conducted at the beginning and ending cut off periods.

(iii) Secure from the Storekeeper a list of all accountable documents issued to the Accountable Officer during the period of examination and reconcile this with the inventory of used and unused accountable forms.

(iv) Gather all required documents -
Gather Accounting copy of basic documents such as AI, WSR, WSI, WTS, SIA, ESR, ESI. Note in the working papers missing documents. Canceled documents should be listed canceled in the working papers.
(b) Grains Stocks, Grains by-products
RESPONSIBLE EMPLOYEE

(i) Gather pertinent Reports such as Pest Control, Laboratory Analysis, Warehouse Inspection, Calibration, and Stock Classification Audit. These shall form part of the working paper to be used in computing the tolerable allowance.

Evaluate these reports and require written justification from concerned personnel/official of deficiencies in the performance of duties, e.g. deficiency in pest control administration; deficiency in calibration of weighing scales. The justification must be approved by the Provincial Manager incumbent during the occurrence of the transaction or in his/her absence by any responsible official under whose responsibility falls the said justification.

Verify MCs written in the documents with those indicated in the LARs. In case of discrepancy between the MC per LAR and MC per document, the former shall prevail. Examine all the other reports needed in the evaluation of TOLA.

Trace in the basic documents each document number indicated in the Stock Reports. Using the basic documents, data entry on a per variety basis using the TOLA program that MSD shall install in the Provincial Offices. Do not data entry transactions on in-warehouse and drying.

(ii) Prepare the Schedule of In-Warehouse Transaction. These transactions shall not be considered in determining accountability (short/over before tolerable allowance). Likewise, these are not included in the computation of TOLA. These shall be analyzed separately by noting variances in net kilograms between receipts and issues.
(iii) Prepare the Schedule of Drying Transaction.These transactions shall not be considered in determining accountability (short/over before tolerable allowance). Likewise, these are not included in the computation of TOLA. This schedule is prepared to account for the accountable forms used and as additional information for incidence of MTS transactions. This transaction shall also be analyzed to determine the rate of recovery from drying transactions.
(iv) Generate the Final Statement of Stocks Receipts, Issues, and Balances, net of TOLA (SSRIB).
(v) Prepare the Summary of Stocks Accountability to be attached to the Final SSRIB, net of TOLA.

(c) MTS
RESPONSIBLE EMPLOYEE
Asst. Regional Manager/Working Group

(i) Trace in the basic documents each document number indicated in the MTS Reports. Using the basic documents, note down all necessary data required in the Schedule of MTS Receipts and Schedule of MTS Issues.
(ii) Use separate Schedule for each type of transaction, e.g. one set of schedule for receipt from procurement; another for receipts from milling, etc. Same shall be followed for issues.
(iii) Provide for adequate space in the lower part of the Schedule for prepared by, reviewed and verified by and certified correct portion. Reviewed and verified by shall be signed by the head of the working group as designated by the Asst. Regional Manager and the certified correct portion shall be signed by the Asst. Regional Manager.
(iv) Indicate page number on the upper right hand portion of each Schedule.

(v) Summarize the Schedules and prepare the Final Statement of MTS Receipts, Issues, and Balances (SMRIB).
(2) Preparation of Final Summary of Grains Stocks, Grains by-products, and MTS Accountability

RESPONSIBLE OFFICE/OFFICIAL

(i) Prepare the Final Summary of Stocks and MTS Accountability and attach to this the SSRIB, SMRIB, Schedule of In-Warehouse Transactions, Schedule of Drying Transactions, Schedule of MTS Receipts, and the Schedule of MTS Issues.

3) Preparation of Demand Letter for Written Explanation of Shortage

(a) Grains Stocks, Grains by-products, and MTS

RESPONSIBLE EMPLOYEE
Asst. Regional Manager/Working Group

(i) Whenever applicable, issue to the Accountable Officer the Demand for Written Explanation of Shortage with the attached Final SSRIB, net of TOLA, SMRIB, and the pertinent Schedules. This shall serve as the only chance of the accountable officer to explain or justify his/her shortage.
(ii) In case the accountable officer refuses to receive the Demand Letter for Written Explanation of Shortage, indicate this in the Demand Letter and execute an affidavit describing the circumstance. Copy furnish IAS with the Demand Letter and the affidavit of refusal by the accountable officer to receive the demand letter.
RESPONSIBLE EMPLOYEE

(iii) Present all requests for consideration because no further requests shall be entertained after all the explanations have already been considered.

• The accountable officer shall be given a maximum of thirty (30) calendar days from receipt of the Demand within which to reply, with supporting documents (signed by the incumbent Provincial Manager), to the Working Group.

RESPONSIBLE EMPLOYEE

(iv) For accountable officers who are no longer with NFA, send the Demand for Written Explanation of Shortage to the accountable officer’s last known address by registered mail with return card. Furnish IAS with a duplicate copy of the Demand Letter, photocopies of the registry receipt and the return card.

RESPONSIBLE OFFICE/OFFICIAL

(v) Reply within the prescriptive period of thirty calendar (30) days.

(4) Recomputation of SSRIB/SMRIB
(a) Grains Stocks, Grains by-products, and MTS

RESPONSIBLE OFFICE/OFFICIAL

(i) After evaluating the explanation of the accountable officer, recompute shortage (overage) and or TOLA, if necessary.
(ii) Forward to the COA NFA R.O. the: (1) Final Statement of Stocks Receipts, Issues, and Balances (SSRIB), net of TOLA as generated by the TOLA program; (2) Final Statement of MTS Receipts, Issues, and Balances (SMRIB); (3) Schedule of In-warehouse Transactions and Schedule of Drying Transactions; (4) Schedule of MTS Receipts and Schedule of MTS Issues; and (5) Final Summary of Stocks and MTS Accountability. The Reports shall be accompanied by Transmittal Memo requesting COA to issue the CSB within fifteen (15) working days from receipt of the memorandum
FLOWCHART SHOWING LIQUIDATION OF PAST ACCOUNTABILITY-PART 1

FLOWCHART SHOWING LIQUIDATION OF PAST ACCOUNTABILITY-PART 2

FLOWCHART SHOWING LIQUIDATION OF PAST ACCOUNTABILITY-PART 3

FLOWCHART SHOWING LIQUIDATION OF PAST ACCOUNTABILITY-PART 4
b) Determination of Current Accountabilities
(1) Preparation of the SSRIB/SMRIB

(a) Grains Stocks, Grains by-products, and MTS

RESPONSIBLE EMPLOYEE
Accountable Officer
(i) Forward to the Provincial Accounting Unit all copies of the Weekly Stock and MTS Reports including the Weekly Stock Report for In-Warehouse Transactions and the Weekly Stock Report for Drying Transactions with the accompanying Daily Statements. Likewise, forward to the Provincial Accounting Unit the WSII, Accounting and Auditing copies of AIs, WSRs, WSIs, WTSs, SIAs, ESRs, and ESIs. Submit Daily Reports daily except those assigned in far flung areas, in which case Daily Reports shall be submitted weekly. Make sure that Weekly reports have been signed by the P.O.O. before forwarding them to the Accounting Unit.
RESPONSIBLE EMPLOYEE
Provincial Accountant
(ii) Determine cut off period of accountability for current liquidation. Follow the same procedure in determining cut off of liquidation of past accountabilities.

(iii) Check the veracity of the submitted Daily Statement of Receipts and Issues and the Weekly Stock/MTS Inventory Report. Confirm inter-warehouse transfers and sales transactions. Check if there are no weight variances for in-warehouse transactions. Check if in-warehouse transactions are documented with WTSs and not with WSRs and WSIs. Disregard in-warehouse and drying transactions in determining accountability (short/over before tolerable allowance). See to it that drying and in-warehouse transactions were not included in the Statement of Daily Warehouse Receipts and Statement of Daily Warehouse Issues.

(iv) If there are corrections, return the Statements and warehouse documents to the Accountable Officer with transmittal memo indicating therein the corrections to be made. Upon receipt of corrected Statements from the Accountable Officers, update and correct stock balances; and sign all verified correct Reports.

(v) If there are no corrections, immediately update and correct stock/MTS balances per books; and sign all verified correct Reports.

(vi) Forward to COA NFA Provincial Office the Weekly Reports and Daily Reports with transmittal memo requesting for post audit of transactions.

(vii) If there are corrections by COA, receive memorandum from COA informing management of corrections per post-audited Reports. Return the post-audited Reports to the Accountable Officer for correction. After the corrections are made by the Accountable Officer, adjust the accounting records accordingly and return and distribute copies of the Statements and documents correspondingly.

(viii) Remind Operations Section of maturing accountabilities for bag to bag weighing.

RESPONSIBLE EMPLOYEE
Provincial Operations Officer
(ix) Monitor stock balances.
• Request the PIC for bag to bag counting for accountabilities running for one year regardless of stock balance.
• Program prioritization of moving out of stocks from accountabilities running for more than one year without liquidation yet.
(x) Request the PIC for bag to bag counting for accountabilities running more than six months but less than one year with total stock balances of 5,000 bags and below.

RESPONSIBLE EMPLOYEE
Provincial Inventory Committee (PIC)
(xi) Conduct inventory count of stocks, MTS, and unused accountable forms and prepare the Inventory Count Sheet .

(xii) Document the actual weighing of stocks in the WTS with repiling and ending inventory bag to bag weighing as type of transaction.

RESPONSIBLE EMPLOYEE
Accountable Officer
(xiii) Prepare WSI/ESI with ending inventory bag to bag inventory taking as type of transaction and input the same in the Stock/MTS Reports.

RESPONSIBLE EMPLOYEE
Provincial Accountant
(xiv) Reconcile the inventory of used and unused accountable forms with the accountable forms issued by the property custodian.

RESPONSIBLE EMPLOYEE
Provincial Accountant
(xvi) After determining the final stock/MTS shortage/overage, forward to the R.O. their copy and the liquidation copy (COA copy) of the Weekly Stock/MTS Inventory Reports together with the Daily Statements (stocks) and Weekly Statements (MTS).
RESPONSIBLE EMPLOYEE
Asst Regional Manager/Working Group
(xvii) Using the Daily Statements for stocks, enter data on a per variety basis using the TOLA program.

(xix) Prepare the Final SMRIB which is the summary of the Statement of Weekly MTS Receipts and Statement of Weekly MTS Issues.

(2) Preparation of the Final Summary of Stocks and MTS Accountability

RESPONSIBLE EMPLOYEE
Asst Regional Manager/Working Group
(i) Prepare the Final Summary of Stocks and MTS Accountability and attach to it the Final Statement of Stocks Receipts, Issues, and Balances (SSRIB), net of TOLA; Final Statement of MTS Receipts, Issues, and Balances (SMRIB); liquidation copies of the: Weekly Stock Report for In-Warehouse Transactions; Weekly Stock Report for Drying Transactions; Statement of Weekly MTS Receipts; and the Statement of Weekly MTS Issues.

(3) Preparation of Demand Letter for Written Explanation of Shortage
(a) Grains Stocks, Grain by-products, and MTS
RESPONSIBLE EMPLOYEE
Asst. Regional Manager/Working Group
(i) Whenever applicable, issue to the Accountable Officer the Demand for Written Explanation of Shortage with the attached Reports and Statements. This shall serve as the final chance of the accountable officer to explain or justify his/her shortage.

(ii) In case the accountable officer refuses to receive the Demand Letter for Written Explanation of Shortage, indicate this in the Demand Letter and execute an affidavit as to the refusal of the accountable officer to receive the demand letter. Copy furnish IAS with the Demand Letter and the affidavit of refusal by the accountable officer to receive the demand letter.
RESPONSIBLE EMPLOYEE
Accountable Officer
(iii) Present all requests for consideration because no further requests shall be entertained after all the explanations have already been considered.

• The accountable officer shall be given a maximum of thirty (30) calendar days from receipt of the Demand Letter within which to submit explanation with supporting documents (signed by the incumbent Provincial Manager), to the Working Group.

RESPONSIBLE OFFICE/OFFICIAL
Asst. Regional Manager/Working Group
(iv) For accountable officers who are no longer with NFA, send the Demand Letter for Written Explanation of Shortage to the accountable officer’s last known address by registered mail with return card. Furnish IAS with a duplicate copy of the Demand Letter and photocopies of the registry receipt and return card.

RESPONSIBLE EMPLOYEE
Accountable Officer (no longer with NFA)
(v) Reply within the prescriptive period of thirty (30) calendar days.

(a) Grains Stocks, Grain by-products, and MTS
RESPONSIBLE EMPLOYEE
Asst Regional Manager/Working Group
(i) After evaluating the explanation of the accountable officer, recompute the shortage and TOLA, if necessary.

(ii) Forward to COA NFA R.O. the: (1) Final SSRIB, net of TOLA, for stocks; (2) Final SMRIB for MTS; (3) Weekly Stock Report for In-Warehouse and Weekly Stock Report for Drying Transactions; (4) Weekly MTS Receipts/Issues with Statements of Weekly MTS Receipts and Statement of Weekly MTS Issues; and (5) Final Summary of Stocks and MTS Accountability. The Reports shall be accompanied by a Transmittal Memorandum requesting for a Certificate of Settlement and Balances (CSB) within fifteen (15) working days from receipt of the memorandum.

FLOWCHART SHOWING LIQUIDATION OF CURRENT ACCOUNTABILITY-PART 1

FLOWCHART SHOWING LIQUIDATION OF CURRENT ACCOUNTABILITY-PART 2

FLOWCHART SHOWING LIQUIDATION OF CURRENT ACCOUNTABILITY-PART 3